Pilgrim Baxter Founders Resign

Harold Baxter, chairman and chief executive of
Pilgrim Baxter & Associates, and Gary Pilgrim have both
given up their post at the mutual fund firm they started in
1982.
The moves came after an internal probe raised
questions about investments made by Pilgrim, according to a
Reuters report.

The probe focused on investments made by Pilgrim into a
private investment limited partnership that, with Baxter’s
knowledge, bought and sold shares in Pilgrim Baxter funds
between March 2000 and December 2001.
“(The) review has brought into focus conduct that was not,
in our view, consistent with the highest standards of
professional
behavior
,” David Bullock, who has taken over as Pilgrim Baxter
chief executive, said in a statement.
Bullock joined Pilgrim Baxter in July as president and
chief operating officer from Transamerica Capital Inc.

Old Mutual, which bought the firm in 2000 (See
Old Mutual Closes UAM Acquisition
), said it would pay Baxter and Pilgrim $58.3 million due
to them under an earlier agreement, minus an early-payment
discount, and a further payment of $11 million for their
holdings in the firm. Old Mutual said it would not pay
compensation to the men for leaving their jobs.

Scott Parker, CEO of Old Mutual Asset Management,
of which Pilgrim Baxter is a part, has replaced Baxter as
chairman of the firm.